PACRA Maintains Stability Rating of Pak Oman Advantage Islamic Income Fund

Pak Oman Advantage Islamic Income Fund (“POAIIF” or "the Fund”) maintains a moderate risk profile. The primary objective of the Fund is to provide investors with competitive current income and long-term capital growth by investing in a diversified portfolio of Shariah-compliant securities, including investments outside Pakistan, subject to applicable regulatory limits. As of Dec’25, the Fund’s AUM stood at PKR 92mln, down from PKR 100mln at the time of the last review, reflecting moderate net outflows. In terms of asset allocation, ~42% of the portfolio was placed in cash placements, ~28% invested in GoP Ijarah Sukuks, and ~19% allocated to corporate Sukuks, with the remaining invested in other avenues. The allocation reflects a mix of liquidity and sovereign exposure, alongside selective participation in corporate instruments to enhance returns. From a credit quality perspective, ~66% of the portfolio was invested in Government/AAA rated avenues, ~19% in AA+ rated instruments, and ~0.80% in AA rated exposures, while the remaining portion was invested in other categories. The overall credit quality remains sound and align with the PACRA's rating criteria. As of Dec’25, the Fund’s duration stood at 197 days, indicating elevated sensitivity to interest rate movements compared to short-duration peers. The WAM was recorded at 303 days, reflecting relatively higher credit risk exposure due to longer maturity instruments. The unit holding pattern remained highly concentrated, with ~98% of units held by the top 10 investors. Notably, ~47% of these holdings were related to associated companies, which provides some stability to the investor base and partially mitigates redemption pressure. In terms of performance, the Fund reported an annualized return of 6.57% as of Dec’25, which remained below the benchmark return of 9.30% and the peer average return of 10%, indicating underperformance relative to comparable funds.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Pak Oman Asset Management Company Limited was incorporated on July 28, 2006, as a public unlisted company. It is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a majority owned subsidiary of Pak Oman Investment Company Limited (99.46%). The remaining shareholders include Oman International Development and Investment Company, SAOG (0.54%). The company’s Board of Directors comprises six members including the managing director of Pak Oman Investment Company Limited, Mr. Nauman Ansari. The board’s chairman H.H. Sayyid Juland Jaifar Salim Al-Said has over 15 years of experience at the Oman Investment Authority (OIA) (Previously known as State General Reserve Fund). The company’s diverse product slate includes nine open end funds as of Dec'25 belonging to all major categories. The AUMs of the Company stood at ~PKR 8,621 mln at the end of Dec'25.